France's public deficit to reach 11.4 pct of GDP in 2020: minister. Client Log In, Facebook

This website uses cookies to improve your experience while you navigate through the website. General government deficit is defined as the balance of income and expenditure of government, including capital income and capital expenditures. Government spending jumped 10 percent from a year earlier to EUR 328.9 billion. The seasonally-adjusted IHS Markit Flash Composite Purchasing Managers’ Index (PMI) fell to 47.3 in October, from 48.5 in September, marking the worst reading in five months. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Now more than ever we need unbiased, expert information on how and why the European Union functions. Under the 1992 Maastrict Treaty, all members of the European Union are obliged - in theory - to keep their public deficit under three per cent of their total output, in order to protect the stability of the euro. Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. The public deficit of eurozone members, or new borrowing per year, cannot be higher than three per cent of GDP. There are only two ways to reduce a budget deficit. In the case of France, the 2019 budget plan sees its structural deficit (the difference between spending and revenues, excluding one-off items) falling … How to Reduce a Budget Deficit . © 2020 Copyright RFI - All rights reserved. Reduction of public debt should be the main priority for France, Italy, and Spain, which have “failed to put their finances in order” during the economic upswing of recent years, the European Commission warned on Wednesday (20 November) at the presentation of the autumn fiscal package. The opposite of a budget deficit is a budget surplus. But opting out of some of these cookies may have an effect on your browsing experience. The total financing requirement will stand at €282.3bn, mainly consisting of €152.8bn to cover the deficit to be financed and €127.3bn to redeem medium- and long-term debt maturing in 2021. Contact us. Google+, Facebook "We're in debt, and more and more so, because we have chosen to save the French economy," Darmanin told France 2 television. On 10 March, French President Emmanuel Macron had announced that €5 billion over ten years would be allocated to research during a visit to the Pasteur Institute. All quotes delayed a minimum of 15 minutes. The European Central Bank (ECB) has announced a massive debt buyback plan worth €750 billion. These cookies will be stored in your browser only with your consent. See here for a complete list of exchanges and delays. By continuing to browse the website, you are agreeing to our, We know our readers value our reporting, and the outpouring of support we have received since the beginning of the crisis shows that our readers are willing to step up for the journalism that they trust and value. Here’s how other European countries are peforming: Greece: Public deficit: 12.7 % of GDP (in 2009); Public debt: More than 300 billion euros, or 125% of GDP (2010 forecast); Unemployment rate: 9.7%.Germany: Public deficit: 5.5 % (2010 forecast); Public debt: 76 %; Unemployment rate: 8.6 %. France's government budget deficit widened to EUR 165 billion in the first eight months of 2020 from EUR 123.1 billion a year earlier, amid efforts to support the economy hit by the coronavirus crisis.

Prior to the lockdown, several universities and research centres had been on strike due to the decrease in funding foreseen by the proposed reform of the sector. France will surpass the 3% Deficit ceiling set by the Fiscal Compact, following updated growth and revenue forecasts, the Finance Ministry said. EURACTIV France reports. According to economist Eric Chaney, who was interviewed by the Institut Montaigne, the French economy could shrink by 5% this year. RFI is not responsible for the content of external websites. France's government budget deficit increased to EUR 161.6 billion in the first nine months of 2020 from EUR 109 billion a year earlier, amid efforts to support the economy hit by the coronavirus crisis.

The French government continues to announce billions in stimulus spending and support measures for companies as well as employees affected by the COVID-19 crisis. That should further ease the level of interest rates and support banks, especially those most exposed to Italian debt, which is showing serious signs of weakness.

Get a sample report showing our regional, country and commodities data and analysis. By clicking on 'Allow' or any content on this site, you agree that cookies can be placed. France's soaring budget deficit could make it liable for EU-imposed economic sanctions, although imposing such measures would be politically difficult in the current economic climate. Do you value EURACTIV’s reporting? Although largely necessary, those could send the country’s budget deficit through the roof, EURACTIV France reports. Spain: Public deficit: 11.4 % (2009); Public debt: 66.3% (2010 forecast); Unemployment rate: 19.5 %. Following the announcement of an initial 15-day containment phase throughout France, measures to support the economy were presented on Tuesday (17 March) by Economy Minister Bruno Le Maire.

"We have spent a lot of money to guarantee workers' wages, support liberal profession and traders. Over the same period, France's public debt rose to 1.489 trillion euros or 77.6 per cent of GDP, up from 67.5 per cent in 2008. The increase soared to 80.1 billion euros more than 2008's. A budget deficit occurs when an government spends more money than it takes in. Efficacité et Transparence des Acteurs Européens 1999-2018. France's budget deficit will rise next year but stay below the European Union's limit of 3 percent of economic output, according to figures given by Finance Ministry officials on Tuesday. 5 years of France economic forecasts for more than 30 economic indicators.

This category only includes cookies that ensures basic functionalities and security features of the website. France will surpass the 3% Deficit ceiling set by the Fiscal Compact, following updated growth and revenue forecasts, the Finance Ministry said. France’s budget deficit could skyrocket to 7% of GDP in COVID-19 aftermath. Greece is not the only eurozone member with problems. Google+, © Copyright: 2020.

Many countries struggled to meet the EU targets even before the financial crisis in 2008, and since then public deficits have rocketed across the continent. The government previously expected this year's budget gap to hit 9 percent of GDP. © COPYRIGHT 2020 NEW EUROPE | ALL RIGHTS RESERVED. This information should not be behind a paywall, and we remain committed to providing our content for free. Insee forecasts that debt will increase again in 2010, reaching 83.2 per cent of GDP this year and 87.1 per cent in 2012. | LinkedIn LinkedIn Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. | France Economy | Privacy Policy | Cookies Policy | Terms & Conditions | Sitemap | RSS feed, Economic Growth (GDP, annual variation in %), Industrial Production (annual variation in %), Inflation Rate (HICP, annual variation in %, eop), Inflation Rate (HICP, annual variation in %), France: Composite PMI falls to five-month low amid surging new Covid-19 cases, France: Economy bounces back at record-breaking pace in Q3, France: Consumer confidence ticks down in October, France: Private sector activity falls at fastest pace in five months in October, France: Business confidence deteriorates in October, falling further below long-term average. At the same time, readers support in the form of, recurring monthly financial contributions.

Our Standards: The Thomson Reuters Trust Principles. The content you requested does not exist or is not available anymore.

President Emmanuel Macron’s government has decided to make a one-off payroll tax credit scheme a permanent tax cut. We are more confident than ever in our role bridging media, policy, and the public. Portugal: Public deficit: 9.3 %; Public debt: 84.6% (2010 forecast); Unemployment rate: 10.4%.Italy: Public deficit: 5.3 % (2010 forecast); Public debt: 115.8 %; Unemployment rate: 10 %.Ireland: Public deficit: 14.7 % (2010 forecast); Public debt: 82.9% (2010 forecast); Unemployment rate: 13.3%.France: Public deficit: 8.2 % (2010 forecast); Public debt: 83.2 % (2010 forecast); Unemployment: 10 % (fourth quarter 2009). Insee attributes France's growing deficit to a sharp drop in government revenues and a simultaneous increase in public spending. Click on the button below to get started. The government’s plan of attack envisages the mobilisation of €345 billion to support the economy in the way of support measures for companies, employees and the research sector worth billions to mitigate the COVID-19 crisis. Necessary cookies are absolutely essential for the website to function properly. For a regular update of the COVID-19 situation in France, click here.

", The minister expected this year's budget gap to reach 220 billion euros (246.44 billion U.S. dollars), adding that "France has never had such a level of budget deficit.". Meanwhile, gross public debt came in at 98.1% of GDP, unchanged from 2018 and less that the 98.8% the government had expected. Terms and Conditions This story is part of New Europe's Premium content. Chaney estimates that France will see a 15% contraction in activity in the second quarter, a decline which will weigh on the state’s tax resources, and send the budget deficit skyrocketing to 7% of GDP this year. Daily newsletterReceive essential international news every morning, Keep up to date with international news by downloading the RFI app, Public sector strikes put Sarkozy under pressure, Slight upturn for Paris region but no new jobs yet, Paris bans nighttime takeaway food and delivery as Covid cases climb, Saudi princess robbed of €1.5 million-worth of luxury handbags and jewellery in Paris, France mourns loss of heroic WW2 Résistance fighter Pierre Simonet, 'Sorry Amazon': French supermarket to help local bookshops sell online, With almost 60.000 new cases, France reports new Covid-19 record, France puts half of the country's poultry farms on high alert for bird flu, French MPs reverse earlier rejection, extend health emergency until February, Macron clarifies French fight against Islamist extremism, not Islam, French government bans Turkish ultra-nationalist group Grey Wolves, French government promises another €20bn in fourth revision of Covid budget, French MPs reject extension to health state of emergency until February, French writers and musicians defend culture in the face of Covid lockdown. Moreover, Macron has to … PARIS (Reuters) - France’s public deficit and debt were slightly lower last year than the government had expected, the INSEE official stats agency said on Wednesday, offering some relief among all the economic gloom around the coronavirus outbreak.